AFP, Hong Kong :
Most Asian markets were mixed Thursday after the Federal Reserve cut interest rates again and data showed the US economy remained “resilient”, though gains were tempered by the bank’s indication it is unlikely to make any more reductions.
The dollar struggled to recover from the widely expected move, with the broadly upbeat mood providing support to higher-yielding, riskier currencies, while the pound was also helped by receding Brexit worries.
After announcing the third cut this year – having raised rates four times in 2018 – Fed chief Jerome Powell said that while the China-US trade row and Brexit uncertainty had hit investment, the economy had been “resilient to the winds that have been blowing this year”.
His comments came after data showed growth dipped marginally in the third quarter to 1.9 percent but was much better than the 1.6 percent forecast. A reading on private-sector jobs also showed a better-than-expected rise.
He added: “We took this step to help keep the US economy strong in the face of global developments and to provide some insurance against ongoing risks.”
The bank’s statement indicated policy board members would not unveil another cut next month, and Powell added that it would only do so “if developments emerge that cause a material reassessment of our outlook”.
Investors cheered the news, with the S&P 500 on Wall Street rallying to its second record close in three days, while the Dow and Nasdaq also rose as investors are also buoyed by progress in the China-US trade talks and strong earnings.
Most Asian markets were mixed Thursday after the Federal Reserve cut interest rates again and data showed the US economy remained “resilient”, though gains were tempered by the bank’s indication it is unlikely to make any more reductions.
The dollar struggled to recover from the widely expected move, with the broadly upbeat mood providing support to higher-yielding, riskier currencies, while the pound was also helped by receding Brexit worries.
After announcing the third cut this year – having raised rates four times in 2018 – Fed chief Jerome Powell said that while the China-US trade row and Brexit uncertainty had hit investment, the economy had been “resilient to the winds that have been blowing this year”.
His comments came after data showed growth dipped marginally in the third quarter to 1.9 percent but was much better than the 1.6 percent forecast. A reading on private-sector jobs also showed a better-than-expected rise.
He added: “We took this step to help keep the US economy strong in the face of global developments and to provide some insurance against ongoing risks.”
The bank’s statement indicated policy board members would not unveil another cut next month, and Powell added that it would only do so “if developments emerge that cause a material reassessment of our outlook”.
Investors cheered the news, with the S&P 500 on Wall Street rallying to its second record close in three days, while the Dow and Nasdaq also rose as investors are also buoyed by progress in the China-US trade talks and strong earnings.
